{"id":75289,"date":"2023-06-08T08:55:18","date_gmt":"2023-06-08T08:55:18","guid":{"rendered":"https:\/\/www.techopedia.com"},"modified":"2023-07-03T10:04:06","modified_gmt":"2023-07-03T10:04:06","slug":"7-best-practices-to-mitigate-web3-security-risks","status":"publish","type":"post","link":"https:\/\/www.techopedia.com\/7-best-practices-to-mitigate-web3-security-risks","title":{"rendered":"7 Best Practices To Mitigate Web3 Security Risks"},"content":{"rendered":"

Web3<\/a> is an iteration of the World Wide Web that values decentralized control over data and online transactions. It is built using decentralized blockchains<\/a>. It replaces the centralized server-client infrastructure of Web 2.0, where centralized private enterprises control and own the data.<\/p>\n

However, organizations using blockchain and Web3 technology are subject to a variety of security threats. In fact, in 2022, there were more than 167 major attacks in the Web3 space, for a total loss of about $3.6 billion, up 47.4% from 2021, according to the Global Web3 Security Report 2022<\/a>.<\/p>\n

4 Most Common Web3 Security Risks<\/span><\/h2>\n

Cryptojacking<\/a>:<\/strong> This occurs when a cybercriminal secretly uses a company’s or an individual’s computing power to generate cryptocurrency<\/a>.<\/p>\n

Blockchain vulnerabilities:<\/strong> Security issues associated with cryptocurrency include what’s known as a 51% attack when one person or group of people controls more than 50% of a network\u2019s blockchain. Although rare, a successful 51% attack allows an attacker to have complete control of the network, enabling them to block other transactions from confirming and double-spend coins, for example.<\/p>\n

Phishing attacks:<\/strong> Hackers use these social engineering attacks to steal user data, such as credit\/debit card numbers and login information. In a phishing attack<\/a>, a cybercriminal takes on the identity of a trusted individual or company to trick the target into opening an instant message, email, or text message. The attacker then tricks the victim into clicking on a malicious link. In this way, the individual can inadvertently reveal sensitive information<\/a> as well as install malware<\/a>, such as ransomware.<\/p>\n

Zero-day attacks:<\/strong> A zero-day attack<\/a> exploits a software security vulnerability that the vendor or developer likely doesn’t know about. During such an attack, a hacker releases malware to exploit the vulnerability before the developer has patched the flaw.<\/p>\n

There are a few practices that can be used to mitigate these and other Web3 security risks.<\/p>\n

7 Best Practices to Effectively Manage and Reduce Web3 Security Risks<\/span><\/h2>\n

1. Only Download and Install Apps From Known Sources<\/strong><\/p>\n

One way for businesses to mitigate Web3 security risks is by not downloading and installing apps from unknown sources, including websites that may not be reputable. Companies should only download and install apps from known sources.<\/p>\n

2. Adopt the Security-by-Design Approach<\/strong><\/p>\n

Traditional security-by-design principles are as critical for Web3 systems as they are for other systems. Therefore, developers must incorporate security principles into their infrastructures, designs, and products.<\/p>\n

For instance, developers should aim to reduce attack surfaces<\/a>, secure zero-trust frameworks<\/a>, and ensure the principle of least privilege<\/a> (POLP) and separation of privileges.<\/p>\n

3. Apply Security Strategically<\/strong><\/p>\n

To ensure the security of Web3, organizations must apply security strategically. Doing so is as important as embracing security-by-design principles. Developer teams must proactively consider the types of blockchain technology they will be using for their projects.<\/p>\n

For example, they must decide whether to use public blockchains, such as Ethereum<\/a>, or private blockchains.<\/p>\n

This is critical because private blockchains require that users confirm their identities, access privileges, and other similar details. Public blockchains, on the other hand, allow anyone to join with various levels of anonymity,<\/p>\n

Companies should consider these factors as well:<\/p>\n